ARE United Arab Emirates profile

The United Arab Emirates operates as a federation of emirates with a constitutional framework and a centralized administrative apparatus that coordinates national policy across member states. Political participation is limited, with power concentrated among ruling families and appointed officials, and there are no nationwide elections. The Federal National Council exists as a consultative body with restricted legislative powers, and media and civil society face restrictions that shape public discourse. The rule of law and judicial independence are often affected by executive influence, while labor and human rights concerns persist, particularly in relation to migrant workers whose protection and remedies are debated.

Colonial history Yes, British protectorate
Former colonizer United Kingdom
Government type Federal absolute monarchy
Legal system Sharia and civil law
Political stability High

The economy shows resilience through diversification into trade, logistics, finance, tourism, and industry, supported by free zones and state investment. The state maintains a strong presence in key sectors and pursues strategic growth through public sector involvement and large projects. Reliance on foreign labor and the capital intensity of development create vulnerabilities in social cohesion and external shocks. Policy transparency and competition face scrutiny, and social and housing costs can affect affordability and stability for residents.

Currency name United Arab Emirates Dirham (AED)
Economic system Diversified economy with a strong oil sector
Informal economy presence Yes, particularly among expatriate workers
Key industries Oil and gas, tourism, aviation, trade, finance
Trade orientation Export-oriented, particularly oil and gas

The country sits in a harsh desert climate with a long coastline and limited freshwater resources, making water security and climate resilience central policy priorities. Desalination and energy intensive infrastructure underpin power and water supply as urban demand grows. Environmental pressures include habitat loss, air and water pollution, and coastal ecosystem stress, even as conservation efforts and green energy deployment advance. Climate change risks such as extreme heat and sea level rise require adaptation planning across sectors.

Bordering countries Saudi Arabia, Oman
Climate type Desert
Continent Asia
Environmental Issues Water scarcity, desertification, loss of biodiversity
Landlocked No
Natural Hazards Dust storms, extreme heat
Natural resources Petroleum, natural gas, fish, and pearls
Terrain type Flat, sandy desert, mountain ranges in the east

The population includes a large expatriate workforce underpinning economic activity, while citizens enjoy benefits tied to policy and subsidy programs. Social norms and legal structures shape gender roles and personal freedoms, and reforms seek to expand education, health care, and civic participation. Disparities persist in income, housing, and access to services, and concerns remain about working conditions for migrants, social protections, and limited avenues for political pluralism or organized labor.

Cultural heritage Rich Bedouin traditions, hospitality, and architecture
Driving side Right
Education system type Mixed (public and private)
Ethnic composition Emirati nationals, expatriates (South Asian, Western, Arab)
Family structure Nuclear family prevalent; extended family valued
Healthcare model Mixed public-private system
Major religions Islam
Official languages Arabic

The country invests in infrastructure and logistics networks, airports, seaports, roads, and smart city programs, alongside digital government services. It emphasizes innovation, fintech, space exploration, and renewable energy integration, while governance of data, privacy, and surveillance raises civil liberty concerns. Energy and water systems rely on a mix of traditional and modern resources, with a push toward solar and nuclear capacity. Urban planning and transport systems aim for efficiency and mobility, but affordability and regional disparities remain ongoing challenges.

Internet censorship level Moderate
Tech innovation level High
Transport system type Developed urban transport system, including metro, buses, and taxis

Development indicators

Indicator Year Value Rank 5Y Rank Change
Political Stability and Absence of Violence/Terrorism 2023 0.678 54 -3
Regulatory Quality 2023 1.04 35 -4
Rule of Law 2023 0.882 40 -3
Unemployment, total (% of total labor force) 2023 2.15 88 -25
Birth rate, crude (per 1,000 people) 2023 9.77 161 -8
Death rate, crude (per 1,000 people) 2023 0.932 197 +1
Exports of goods and services (% of GDP) 2023 109 7 -2
GDP per capita (current US$) 2024 49,378 23 -5
GDP per capita, PPP (current international US$) 2024 77,959 15 +8
High-technology exports (current US$) 2023 3,417,562,262 41 -17
Hospital beds (per 1,000 people) 2021 1.98 39 -49
Imports of goods and services (% of GDP) 2023 93.7 13 -26
Inflation, consumer prices (annual %) 2024 1.66 122 -55
Life expectancy at birth, total (years) 2023 82.9 24 +2
Mortality rate, under-5 (per 1,000 live births) 2023 5 134 +1
Net migration 2024 278,439 6 -199
Patent applications, residents 2021 69 72 -3
Population, total 2024 10,876,981 87 -8
Prevalence of undernourishment (% of population) 2022 2.7 90 +11
Renewable energy consumption (% of total final energy consumption) 2021 1 165 -1
Research and development expenditure (% of GDP) 2021 1.49 25 -9
Foreign direct investment, net inflows (% of GDP) 2023 5.97 34 -71
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources 2021 1,533 2 0
Total greenhouse gas emissions excluding LULUCF per capita (t CO2e/capita) 2023 25.5 6 0
Current health expenditure (% of GDP) 2022 4.68 132 -20
Domestic general government health expenditure per capita, PPP (current international US$) 2022 2,259 39 0
Physicians (per 1,000 people) 2021 2.91 42 -8
Suicide mortality rate (per 100,000 population) 2021 1.71 162 +3
Individuals using the Internet (% of population) 2023 100 1 -4
Control of Corruption 2023 1.07 31 0
Government Effectiveness 2023 1.6 11 -9
Logistics performance index: Quality of trade and transport-related infrastructure (1=low to 5=high) 2022 4.1 5

Demography and Health

The United Arab Emirates presents a dynamic demographic profile driven by migration as much as natural population growth. In 2024 the population stood at about 10.88 million, supported by a sizable net inflow of people (net migration of 278,439 in 2024), underscoring the country’s role as a regional hub attracting workers and residents from across the globe. Life expectancy at birth is 82.9 years (2023), reflecting strong health outcomes and living standards that align with higher-income economies. The birth rate is 9.77 per 1,000 people (2023) and the crude death rate is 0.932 per 1,000 (2023), indicating a slowly expanding population in the wake of migration and improving health conditions. Unemployment remains low at 2.15% (2023), consistent with a tight labor market and ongoing diversification of the economy. Internet access is universal, with 100% of the population using the internet (2023), signaling widespread digitalization and opportunities for online services and remote work. Health capacity metrics show hospital beds at 1.98 per 1,000 people (2021) and physicians at 2.91 per 1,000 people (2021), reflecting a well-resourced health system for a mid-sized advanced economy. Health expenditure stands at 4.68% of GDP (2022), with domestic general government health expenditure per capita at PPP of about 2,259 international US$ (2022), pointing to substantial public investment in health services. Under-5 mortality is 5.0 per 1,000 live births (2023), indicating strong child health outcomes in a context of high living standards. Together, these indicators reveal a society with high life expectancy, strong health indicators, and rapidly evolving demographics driven by migration and urbanization.

Economy

The UAE’s economy sits at a high level of affluence and global integration. GDP per capita is about 49,378 current US$ in 2024, with purchasing power parity (PPP) equal to roughly 77,959 international US$, highlighting a material standard of living well above the regional average. The external sector is exceptionally prominent, with exports of goods and services representing about 109% of GDP in 2023 and imports at 93.7% of GDP, signaling a highly trade-reliant and open economy. Inflation runs modestly at 1.66% in 2024, suggesting price stability that supports consumer and business planning. The country is active in technology-intensive trade, evidenced by high-technology exports valued at about 3.4 billion USD in 2023, and a research and development expenditure of 1.49% of GDP in 2021, indicating a continuing push toward sophistication and diversification beyond raw energy. Domestic innovation activity appears in slow but observable form, with 69 patent applications by residents in 2021. Foreign direct investment (FDI) inflows reach 5.97% of GDP in 2023, reflecting a favorable investment climate and openness to capital, while population dynamics (including a large net inflow) help sustain demand, labor supply, and growth momentum. The UAE also demonstrates energy intensity in its economy, with renewable energy consumption comprising about 1% of total final energy consumption in 2021, underscoring ongoing challenges and opportunities in the energy transition alongside a high per-capita emission footprint.

Trade and Investment

Trade and investment are central to the UAE’s development model. Trade facilitation is evidenced by a Logistics Performance Index of 4.1 (2022), ranking around the top tier globally (5 being the best), which reflects high-quality trade and transport-related infrastructure and efficient logistics networks. This supports the country’s large external transactions, including exports that exceed 100% of GDP (109% in 2023) and substantial imports (93.7% of GDP in 2023). The open trade regime is complemented by a healthy level of FDI inflows (5.97% of GDP in 2023), signaling confidence from international investors and cross-border capital availability. The combination of advanced logistics, significant FDI, and a modern, diversified export base positions the UAE as a regional hub for commerce, manufacturing, and services, even as it maintains a strong reliance on imported goods and inputs to support its high standard of living and fast-growing sectors.

Governance and Institutions

Governing institutions in the UAE show a strong effectiveness framework, with governance indicators pointing to a robust policy environment. Control of corruption is measured at 1.07 (rank 31), regulatory quality at 1.04 (rank 35), and rule of law at 0.882 (rank 40), while government effectiveness stands at 1.60 (rank 11). Political stability and absence of violence/terrorism are recorded at 0.678 (rank 54) and 0.678 is a lower score compared with some peers, suggesting regional risk factors but not undermining the overall stability of the state and its institutions. Taken together, these indicators suggest a government capable of implementing policy, maintaining a stable macro framework, and sustaining a pro-business climate, even as the country navigates regional risks and the complexities of reform. The combination of high government effectiveness and relatively strong regulatory quality supports predictable governance, durable institutions, and a climate conducive to investment and economic planning.

Infrastructure and Technology

Infrastructure and technology are central to the UAE’s development narrative. The country benefits from a logistics system rated highly by the Logistics Performance Index (4.1, 2022), with a top overall standing in quality of trade and transport-related infrastructure (1=low to 5=high). Internet penetration is universal at 100% (2023), reflecting a highly connected economy and digital society. The innovation ecosystem shows a resident patent activity of 69 applications (2021) and R&D expenditure at 1.49% of GDP (2021), indicating ongoing investment in knowledge-based capabilities. High-technology exports reached about 3.42 billion USD (2023), illustrating integration into global technology value chains. Health and human-capital infrastructure show 1.98 hospital beds and 2.91 physicians per 1,000 people (both 2021), alongside a relatively high per-capita health expenditure and public health resources (4.68% of GDP; PPP per-capita health spending around 2,259 international US$ in 2022). While renewable energy consumption remains modest at 1% of total final energy (2021), the combination of digital connectivity, a sophisticated logistics network, and ongoing investment in R&D and technology signals a strategic shift toward a more diversified and innovation-driven economy, even as energy and sustainability challenges persist.

Environment and Sustainability

Environmental indicators reveal a highly energy-intensive economy with notable sustainability challenges and selective progress. Total greenhouse gas emissions per capita are 25.5 t CO2e (2023), ranking among the higher per-capita emission levels globally, reflecting heavy energy use and industrial activity. Renewable energy consumption stands at 1.0% of total final energy consumption (2021), underscoring the still-small share of renewables in the energy mix despite ambitious reform plans in energy policy. Water scarcity is a critical issue, with a level of freshwater withdrawal as a proportion of available freshwater resources reported at a high 1533.0 (2021) and a rank of 2, indicating severe water stress. Prevalence of undernourishment is relatively low at 2.7% (2022), suggesting adaptable food systems and imports that help maintain food security. The UAE’s sustainability trajectory thus combines substantial emissions with a low, yet growing, Renewable energy share and a pressing need to advance water management and climate-resilient infrastructure as it diversifies its energy and industrial base.